Amount of money charged on an individual’s property or activity for the support of state or federal government (e.g., income tax, sales tax, school tax, state tax, use tax).
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To assess or determine judiciously the amount of levy for the support of certain government functions for public purposes. Also, a charge or burden usually pecuniary, laid upon persons or property for public purposes; a forced contribution of wealth to meet and public needs of a government.
Insurance Encyclopedia
Tax and donations
State programs under which funds collected by the state through certain health care–related taxes and provider-related donations were used to effectively increase the amount of federal Medicaid reimbursement without a comparable increase in state Medicaid funding or provider payment levels.
Tax Appraisal Value
This value is purely for tax purposes and may vary from place to place depending on the local tax levels.
Tax Basis
For tax purposes, this is money which has yet to be taxed.
Tax basis (Pensions)
Money that has not been taxed, most often as part of a qualified plan.
Tax cap
Limit on income tax deductions for health insurance.
Tax Clause
A clause in an insurance policy which provides that in the event of a return of premium becoming due any tax allowed for by the insurer on the original premium shall be deducted from the return.
Tax Equity and Fiscal Responsibility Act (TEFRA)
Federal legislation passed in 1982 that raised tax revenue, instituted many provisions for managed care plans, set up Medicare payment limits, and added Medicare coverage for hospice care. It established that an employee or spouse age 65 to 69 years is entitled to the same health insurance benefits offered under the same conditions to younger employees and their spouses. TEFRA applies to employers with at least 20 full- or part-time employees. A TEFRA provision allowed states to extend Medicaid coverage to certain disabled children.
Tax factor (Liability Insurance)
A factor added to a premium to cover state taxes.
Tax havens
Low tax areas offshore, particularly attractive to captives. Bermuda tops the list followed by the Cayman Islands, Guernsey, Gibraltar and the Isle of Man. Taxes on profits are deferred until they are repatriated. Formation is more straightforward and, given that captives will have one main or only customer, this is appropriate as the procedures in the developed countries are stringent as their aim is to protect the general public.